Sponsored by: Presented by:

Alan M. Marder, The Raymond

Corp., Director-Technology Solutions

Dean Dorcas, Easy Metrics, CEO

Bob Simon, Genco, Director, Process

Solutions

TECHNOLOGY ADVANCES IN MATERIAL HANDLING

2013 MHI™ Copyright claimed as to audiovisual works of seminar sessions and sound

recordings of seminar sessions. All rights reserved.

WAREHOUSE OPTIMIZATION SYSTEMS

Data acquisition that drives warehouse efficiency

WAREHOUSE OPTIMIZATION

Increase

productivity

Make process

improvements

Create a safer

workplace

Instill driver

accountability

Realize labor savings

Programs such as fleet management systems address these opportunities, and

more…

Provide management with business

intelligence

DID YOU KNOW?

72% of all forklift operating expenses are NOT related to truck price

or general maintenance costs

4

Customers demand information to:

Improve productivity

Increase operational efficiency

Reduce costs

Maximize asset utilization

Instill accountability

Reduce impacts/damage

Reduce liability and risk

MOBILE DATA PLATFORMS

Voice-directed Work

Fixed-mount Computers Vehicle Management Systems

Barcode Data Collection

Battery Monitoring

Truck Data Capture

TRUCK DATA CAPTURE SYSTEMS

FLEET OPTIMIZATION – Core Features

• Electronic vs. Paper Checklists

• Paperless/Automated Record Management

• Wireless Maintenance Alerts

• Automatic Vehicle Lockout

OSHA CHECKLISTS

• Multiple Impact Level Settings

• Wireless Impacts Alerts/Recording by Driver

• Damage Expense Avoidance

IMPACT MONITORING

• Increase Operator Efficiency

• Optimize Vehicle Utilization & Mix

PRODUCTIVITY

• Operator Certification & Authorization

• Enforcement & Lockout

• Automated Asset Tracking

ACCESS CONTROL

LMS TODAY

A review of current Labor Management System solutions

» Cost to serve visibility

» Where are my labor $ being spent?

» What is my cost per unit by process, customer or category?

» How am I tracking compared to my volume adjusted budget?

» Employee Accountability

» Recognize top performers and take action with underperformers daily.

» Fair labor standards are critical.

» Pay-for-Performance

» Share part of the savings with employees for hitting stretch goals.

» Should be based on individual or small team performance.

KEY COMPONENTS OF LABOR MANAGEMENT

» Key Challenges

» Productivity should be tracked at the individual level

» Single metric standards (units/hr) vary too much to be effective

» Timely reporting is needed to make effective management decisions

» Spreadsheets are flexible but have significant limitations

» Hard to track performance over a period of time

» Complex models can break easily

» Traditional Labor Management Systems

» Powerful tools but can be expensive to implement and maintain

› Software integration

› Development and maintenance of Engineered Labor Standards

› Mapping warehouse locations to calculate travel distance

CHALLENGES ASSOCIATED WITH LABOR MANAGEMENT

» Fleet management systems collect real-time data from the vehicle

» Travel distances, utilization rates, impact monitoring, checklist automation

» Labor management systems integrate vehicle and employee activities

» Daily data feed from the fleet management system, WMS, spreadsheets and time clock

» Two Options

» Lite version for facilities without scanned data

» Full version combines the data from a fleet management system with WMS data

» Benefits

» Travel metrics without the cost of XYZ modeling

» Accountability and rewards based on fair and accurate metrics

SOLUTION: Fleet Management + Labor Management

VEHICLE LABOR COST BY ACTIVITY

Data collected through fleet management systems, combined with labor data,

provide the ability to determine cost per case by vehicle type. Management can

direct supervisors to place drivers on the most cost effective equipment for the task

being performed.

Date: July 30, 2012

Employee: Curlew, Paula (443)

Performance Summary

Item Last Period 90 Days YTD

ELS 123.99 % 124.66 % 120.25 %

ELS Rank 14 of 37 13 of 50 16 of 61

QLS 100.00 % 100.00 % 100.00 %

QLS Rank 1 of 37 1 of 50 1 of 61

Direct Hours 67.74 426.75 1,047.28

Indirect Hours 1.83 12.94 12.94

Indirect % 2.64 % 2.95 % 2.64 %

Indirect Rank 17 of 37 28 of 50 24 of 61

Work Days in Period 9 63 147

Bonus Earned $ 191.91 $ 1,102.65 $ 2,405.03

Bonus Rank 5 of 37 8 of 50 8 of 61

Evaluation Score 4.25 4.25 4.25

Eval. Score Rank 1 of 37 1 of 50 1 of 61

Missing Time

Missing Time Rank

EMPLOYEE SCORECARD

» Second largest third-party logistics in North America, with more than 130 facilities

» Has an internal labor management consulting group with extensive experience in this area

» They identified a fleet management system and a labor management system as a powerful combination

» Fully implemented the combined system at the first facility

» Combining lift truck data, WMS data, time clock data and manual tracking sheets

Today…

CASE STUDY – GENCO

A combination of fleet management and labor management systems are now proposed as the solution

for Genco current and new potential 3PL customers.

» How these systems work together

» Vehicle data is exported from the fleet management system to the labor management system

» Also can be integrated with WMS and time clock data

» Result is a complete picture of operator and vehicle activity

» Rewards can be based on fair and accurate metrics

» Warehouse productivity increases and costs are reduced

COMPLETE VIEW OF WAREHOUSE OPERATIONS

473

259

7691

65

99

166

79

27 3419

30

0

50

100

150

200

250

300

350

400

450

500

March April May June July August

Moderate and Medium Level Impact Trend, by MonthGenco Xerox March 1 - August 31, 2012

Moderate Medium

RESULT OF IMPACT TRACKING IS AN 80% REDUCTION IN IMPACTS

Managers can monitor facility

impact trending.

80% reduction in moderate

& medium impacts resulting

in lower cost of product,

MHE and rack damage.

VEHICLE FLEET SIZE AND UTILIZATION CAN BE ANALYZED

Monday

Tues

Wed

Thurs

Friday

Order picker 401 reallocated to

another facility. $25K+ cost avoidance (MHE, battery, maintenance, electricity, cost of capital

etc.)

TRAVEL WITH LOAD UTILIZATION

The red arrow tracks

the month-to-month

improvement in

travel with load

(TWL) as a

percentage of

motion time (the

amount of time the

vehicle is traveling

or lifting).

This metric

measures the

amount of time a

vehicle is actually

moving product.

7.9%

increase (from

58.3% to 62.9%) in

TWL since the fleet

management

system was

implemented.

March April May June July August

Login Hours 7191.42 5116.67 5906.02 6475.57 5456.46 5971.72

Motion Hours 2582.32 1917.33 2215.09 2404.82 2041.38 2212.24

TWL Hours 1505.25 1135.02 1340.66 1483.88 1271.94 1391.38

TWL as a % of Motion Time 58.3% 59.2% 60.5% 61.7% 62.3% 62.9%

0

1000

2000

3000

4000

5000

6000

7000

8000

Improvement in Travel with Load (TWL) Vehicle UtilizationGenco Xerox March 1 - August 31, 2012 - All vehicles except Order Pickers

Login Hours Motion Hours TWL Hours

COST BREAKDOWN BY PROCESS

DAILY PRODUCTION REPORT

DAILY REPORTS ALLOWS FOR TRACKING TO KPI

Any number of KPI can be tracked using a fleet management system. Supervisors receive a daily

report that ranks drivers by their achievement of TWL as a percentage of login time. Those drivers

who achieve highest scores are recognized; those who need coaching are encouraged to adopt

the best practices of their peers.

4 hours of

opportunity

COMPREHENSIVE REPORTING

Incentive takes ramp-

up period into account

Multiple metrics such

as quality and

performance impact

incentive payout

Reach Truck, 60.98%

Rider PJ Short, 21.30%

Counterbalance, 17.48%

Rider PJ Long, 0.24% Order Picker, 0.00%

Vehicle Utilization for Picking:CaseApril 1 through April 26, 2012

Reach Truck Rider PJ Short Counterbalance Rider PJ Long Order Picker

ANALYSIS OF CASE PICKING VEHICLE USAGE

Case-picking vehicle activity was 33.39% of all vehicle activity for the

period April 1 through April 26, 2012. In-depth view of activity by vehicle

type provides insight into best practices to manage labor and vehicle

assignments to maximize profitability.

ReachTruck

Rider PJShort

Counterbalance

Rider PJLong

OrderPicker

Login Hrs 950.1 331.8 272.3 3.7 0.0

TWL Hours 143.4 70.4 61.1 0.8 0.0

LWL Hours 497.9 230.4 127.3 2.4 0.0

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1000.0

Case Picking

Login Hrs TWL Hours LWL Hours

Over 60% of cases picked

using most expensive & less productive MHE

COMBINED PRODUCTIVITY IMPROVEMENT

Introduction of

engineered

standards and

incentive

PRODUCTIVITY TREND GRAPHS

The ability to

graph

productivity

trends was

requested by

the Xerox.

Now, this is

part of the

standard

product.

Incentive program

introduced in August

Easy Metrics Go-Live

in June

» Cutting-edge business intelligence functionality

» True metrics based on operator and vehicle activity

» A complete solution to managing equipment usage, plus…

» An employee reward solution for productivity improvement

» Can optimize fleet for warehouse task requirements

BENEFITS TO YOUR WAREHOUSE

Fleet Management + Labor Management

COMBINED RESULTS

» Increased productivity

» Reduced labor costs

» Reduced impacts

» Increased net savings

» Decreased indirect costs

Speaker: alan.marder@raymondcorp.com

Home Page: www.raymondcorp.com

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